Seanad debates

Wednesday, 24 September 2025

Nithe i dtosach suíonna - Commencement Matters

Job Losses

2:00 am

Joanne Collins (Sinn Fein)
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I welcome the Minister of State and thank him for coming in.

Across County Limerick and the wider region, we have seen a steady erosion of jobs, from Andersen Ireland a decade ago to Irish Dresden in 2021, Rettig in 2023 and, of course, Wyeth Nutritionals, which is closing next March. On top of that, last week we heard the announcement that Kostal in Abbeyfeale will be shutting down one of its sections, which could see up to 50%, that is, 200, of its jobs, being lost. It was confirmed that the company is moving that section of its plant to China. Also last week, Lidl had planning permission in for Abbeyfeale, which was refused, which would have created more employment for the area.

It seems to be a downward spiral constantly when it comes to jobs for west Limerick. Across the border, obviously, it is affecting County Kerry, because there are between 400 and 500 workers in Kostal in Abbeyfeale coming from the two regions, both Limerick and Kerry. This development is devastating for the local area, not only for these positions within the plant but also for the local shops. That is 200 fewer people driving into the town to get their diesel and to go to the shop at lunch. When you see a downward spiral in jobs at this level, it makes you worried as to what is coming.

I would like to know what the Department will do. Are the officials going to step in and discuss this with management? SIPTU is meeting with management on 9 October to see if there is any way of saving some of these jobs. There has been mention that some of these jobs could be moved to the company's Mallow branch. That is great for some, but it depends on where these workers are travelling from in the first place whether they can go to Mallow. I ask the Minister of State if he could take it to the Minister and see what he might be able to do to try to save some of these jobs.

Mike Kennelly (Fine Gael)
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I thank the Minister of State for taking this. The Commencement matter is on the future of the Kostal plant, as Senator Collins has alluded to. I stand with a very real sense of concern but also of hope that, through meaningful engagement and strategic investment, we can safeguard a future and jobs in the communities of west Limerick and north Kerry.

The situation at Kostal Ireland's Abbeyfeale plant is deeply troubling. For over four decades, this facility has provided stable employment and economic support to the region. Many of its workers have given the best years of their lives to this company. I, for one, can vouch for that. My spouse recently finished up with over 32 years' employment in this company. That is what it means to the north Kerry region. While many of its workers have given the best years of their lives to it, they now face a very uncertain future. We must ensure that their dedication is met with fairness and respect. That is why I am urging the Minister for Enterprise, Tourism and Employment to engage directly with union representatives - it is not too late - and Kostal management to allow for constructive dialogue to begin, which is essential not only to exploring solutions but also acknowledging the human impact of these decisions. These workers are not just numbers on a payroll; they are the backbone of their community.

This moment also invites us to look at the broader picture and ask why this is happening. The challenges facing Abbeyfeale, Newcastle West and the south west are not isolated incidents. They reflect a wider issue - the need for improved infrastructure and investment in our region. I am also calling today on the Minister for Transport and the Minister for public expenditure to expedite and prioritise the delivery of the bypasses for the towns of Abbeyfeale and Newcastle West, which have remained for many years a bottleneck on the N21 corridor. Road users continue to suffer from congestion and limited connectivity. There are five capital projects being planned for at present. One is at construction - the Adare bypass - and there are four at design stage. I call on the Minister for Transport to expedite these so that we can get this rolling, but today, our main issue is the workers within Kostal. I applaud Councillor Liam Galvin in Abbeyfeale who is constantly fighting for the road infrastructure investment to come into west Limerick. Without infrastructure and proper investment, we will not get new employers into the region.

Photo of Noel GrealishNoel Grealish (Galway West, Independent)
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I thank Senator Kennelly and Senator Collins for raising this important issue, which I am taking on behalf of the Minister, Deputy Burke.I congratulate Senator Shane Curley. I think it is his first time in the Chair. It may be the first of many. In the next Seanad he could be the Cathaoirleach.

I thank the Senators for raising this matter. Kostal Group is an independent family-owned company headquartered in Germany serving the automotive market. The group's main activities include the development and manufacture of technologically advanced electronic and electromechanical products. Its primary mandate is the manufacture of on-board chargers, OBCs, for the electric vehicle, EV, industry.

On 9 September 2025, staff at Kostal’s Abbeyfeale operation were informed of the transfer of Abbeyfeale’s OBC production to China, which will have a direct impact on employee numbers at the plant. Notwithstanding the loss of the OBC business to China, Kostal has outlined to IDA Ireland its intention to continue operations in Abbeyfeale for the foreseeable future. This includes plans for future investment in the Abbeyfeale facility.

My foremost concern, and that of the Government, is for the potentially impacted employees and their families during this difficult and uncertain time. Ireland has a robust suite of employment rights legislation in place to protect and support workers where collective redundancies are proposed by an employer. In collective redundancy situations, the Protection of Employment Act 1977 imposes certain legal obligations on employers. This includes a 30-day information and consultation process with employees’ representatives, and to notify the Minister for Enterprise, Tourism and Employment at least 30 days before the first redundancy takes effect.

I confirm that the Department of Enterprise, Tourism and Employment has not received a collective redundancy notification from Kostal as of 4 p.m. yesterday. Furthermore, the Government provides a range of supports to any employees facing job losses and the Intreo service of the Department of Social Protection can assist with income supports and relevant employment and training opportunities where needed. Our enterprise agencies will also assist where possible in helping those impacted to find alternative employment. IDA Ireland is actively engaged with the company, including regular meetings with the Irish-based leadership team, and is keeping my Department informed.

Joanne Collins (Sinn Fein)
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I thank the Minister of State. This is great that it has not yet been announced to the Department but I have seen the internal emails to the staff. It is very important that the families of those who may be made redundant are looked after. However, if it does come to pass and 200 jobs are lost, I plead that the businesses in the area also be taken into account because of the loss of traffic that will be coming through and how the loss of those jobs will impact the wider community.

Mike Kennelly (Fine Gael)
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As the Minister of State said, I can confirm the Department of Enterprise, Tourism and Employment has not received a collective redundancy notification. This is warming to hear this morning. Through the Departments, can we as a Government intervene before we get this dreaded letter from Kostal informing us that this is happening? With contract law and all that, is it possible to intervene beforehand? I do not know. However, rather than waiting for it, let us knock on the door of Kostal to see what the Government can do to maybe save these jobs and protect these people's futures with further employment. Will the Government look at that?

Photo of Noel GrealishNoel Grealish (Galway West, Independent)
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I thank both Senators. They are concerned about the local shops and business that supply Kostal. It is a major concern always. When there is a multinational in an area, it is not just about the employment they provide; it is also about the subcontractors. I am sure the engagement with the IDA will be ongoing and every support from the Department will be made available to support the company in any way. If any decision is made, there is support available for the workers who might unfortunately lose their job. It is hoped that it might not come to that but the mechanisms of the State are there. I am sure they will be willing to work with the company and hopefully, some good news might come out of it. As I have stated, no notice of redundancies has come into the Department as of yet, so maybe that is some good news. I again thank both Senators for raising his important issue.

Shane Curley (Fianna Fail)
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Sula bogaimid ar aghaidh go dtí an Seanadóir Cosgrove, ba mhaith liom fáilte a chur roimh na ndaltaí sa Gallery ó Ballyhaunis Comunity School, County Mayo. They are very welcome here. It is great to see students and their teachers coming in to the Chamber and witnessing politics in action. Go raibh míle maith agaibh as teacht isteach inniu.